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The share price of Michael Saylorās MicroStrategy may rise āmeaningfully higherā by the end of this year due to greater institutional adoption of Bitcoin ETFs and the likely rejection of Ethereum ETFs by regulators, TD Cowens said.
One catalyst for the Bitcoin price, and thus MicroStrategy shares, could come on May 15, the deadline for institutional investment managers to file form 13-F with the Securities and Exchange Commission (SEC), analyst Lance Vitanza said in a May 6 note.
If the filings show more institutions have purchased Bitcoin ETFs (exchange-traded funds), it will signal an increase in institutional acceptance of BTC, Vitanza said.Ā
ā#Bitcoin is the best. There is no second best.ā
ā@saylor#BitcoinforCorporationsā MicroStrategy (@MicroStrategy) May 2, 2024
A second potential trigger is the likely rejection by the SEC of Ethereum ETFs about a week later, which could also send investors flocking to Bitcoin, he said.
Given MicroStrategyās aggressive accumulation drive of BTC, both developments could have a positive impact on the leading cryptoās price, and MicroStrategyās share price, Vitanza said.
After attending MicroStrategyās World 2024 user forum in Las Vegas last week, Vitanza also said that customers had a lot of positive feedback regarding the companyās original software business.
āThis is causing us to rethink the potential upside around the operating business,ā the analyst wrote.
MicroStrategy Reports $53.1 Million Loss For Q1 2024
Vitanzaās positive outlook for MSTR comes after MicroStrategy reported a net operating loss of $53.1 million for the first quarter of this year. The reason for the loss was the companyās decision to not adopt a new digital asset fair value accounting standard.Ā
Had the company utilized this new standard, MicroStrategy would have posted a sizable profit from BTCās strong price appreciation.
MSTR is up 89% year-to-date, but could still climb higher, Vitanza believes.
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